1:5 Stock Split Next Week: Why To Buy Zydus Wellness Shares After GST Rate Reduction?

Zydus Wellness created a buzz in the D-Street today as the share price reached a fresh 52-week-high level. After opening at Rs 2490 on the BSE on Thursday, 11th September the stock price reached a yearly record high of Rs 2,533 apiece which marks a rebound of 69.61% from its 52-week-low of Rs 1,493.00 marked on March 4, 2025. By this remarkable rally of Rs 1,040 per share in a span of just 6 months Zydus Wellness has reinforced its position as an attractive pick from an analyst of Choice Broking.

How Recent GST Rate Reduction Is A Boost For Zydus Wellness' Brands?

The GST Council has revised rates of a range of fast-moving consumer goods (FMCG), effective from September 22, reducing them to 5 per cent on various foods products. Hence, Zydus Wellness's key brands like Complan, Glucon-D, Nutralite, Nycil, RiteBite - Max Protein and SugarFree including D'lite will have revised GST rate of 5%.

Additionally, some of the other brands, such as I'm Lite and Ready-to-drink Glucon-D Activors, will continue to remain under the 5% GST regime, according to Zydus Wellness.

"We believe these changes will enhance affordability for consumers, stimulate demand, and further strengthen our market positioning. We will continue to keep you updated on the impact of these reforms on our performance and outlook in the coming period," said Zydus Wellness in a stock exchange filing.

Zydus Wellness Stock Split

The company has set September 18 as the record date for the 1:5 stock split, resulting in the subdivision or split of equity shares from a face value of Rs 10/- each, fully paid up, into 5 equity shares of Rs 2/- each, fully paid up, as approved by the members of the company at the 31st Annual General Meeting held on July 30, 2025.

The authorized share capital would remain at Rs 100 crore after the 1:5 split, but the number of authorized equity shares would increase from 10 crore to 50 crore. Similarly, the number of equity shares would increase from 6,36,32,144 to 31,81,60,720, while the total value of issued, subscribed, and paid-up shares will stay at Rs 63.63 crore.

Zydus Wellness Target Price

Amruta Shinde - Research Analyst at Choice Broking said, "ZYDUSWELL is exhibiting strong bullish momentum. The stock has decisively rebounded from lower levels and is now trading near its all-time high, forming a classic rounding bottom pattern. This pattern suggests the possibility of a sustained uptrend, with the stock on the verge of a breakout. Adding to the positive outlook, a robust bullish hammer candlestick has formed on the daily chart, further validating the ongoing strength in price action. A decisive close above ₹2,550 could open the path toward the ₹2,800 level in the near term."

"From a technical perspective, ZYDUSWELL is trading well above its 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs), underscoring the strength and reliability of the prevailing trend. Immediate support lies at ₹2,375, with a suggested stop-loss at ₹2,330 to safeguard against short-term volatility. Considering the favorable technical setup, confirmed breakout signals, and strengthening momentum, traders may look to enter long positions at the current market price, aiming for a target of ₹2,800. However, disciplined risk management and prudent position sizing remain essential to navigate the inherent volatility of the market," Amruta Shinde further added.

Disclaimer

The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred to as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.